Is TD Ameritrade’s Stock A Good Trade Right Now?

With shares of TD Ameritrade Holding Corporation (NASDAQ:AMTD) trading at around $16.58 is AMTD an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Not much has happened with TD Ameritrade over the past few years. We have seen good news and bad news that had the potential to drive the stock one way or the other, but most of this news has been brushed off and the stock has remained in neutral for the better part of five years. Considering TD Ameritrade has a 2.20% yield, this isn’t the worst-case scenario for stock ownership, but it’s certainly not going to change your lifestyle or pad your retirement account.

On the positive side, new brokerage accounts are up 7% at TD Ameritrade, which is the same as The Charles Schwab Company (NYSE:SCHW), but stronger than E*TRADE Financial (NASDAQ:ETFC), which is at 5.3%. TD Ameritrade has also seen expanding profit margins. In addition to that, the Forward P/E is 13.62 and analysts tend to like the stock. Currently, there are 10 Buy recommendations, 10 Hold recommendations, and only one Sell recommendation. Let’s take a look at some more numbers.